THE SIGNIFICANCE OF FENG SHUI IN AFFECTING THE PURCHASING BEHAVIOUR

Abstract

The dynamic property market with multiple numbers of condominium developments in Singapore has resulted in a highly competitive residential environment today. To remain competitive, developers must design developments that are unique so as to attract specific target markets. Hence, this motivates the exploration of novel attributes such as the significance of Feng Shui in consumers’ mind when purchasing a house as this may create a new avenue for developers in the development of condominiums.

The objectives of this study are to examine the potential of a Feng Shui designed residential project and people’s willingness to pay a premium for a Feng Shui designed house. In addition, the probable Feng Shui believers are identified. An in-depth interview was carried out to solicit views from the real estate professionals. A survey questionnaire was also conducted on 342 respondents. The Analysis of Variance (ANOVA), descriptive statistics, crosstabulations and Ordinal Logit Regression are the main methodologies used to aid the researcher in attaining the research objectives.

The findings have shown the potential of a Feng Shui designed condominium. This is demonstrated by people’s generally positive attitude towards Feng Shui. Moreover, with people living in the private housing as the more likely believers of Feng Shui further indicate its potential. It is also found out that targeted marketing should be applied on the older Chinese who are largely believers of Buddhism/Taoism. In addition, the results have revealed people’s slight willingness to pay a premium of approximately 5%. However, this willingness to pay is more prevalent in those who believe in Feng Shui.